Reference no: EM132959133

Question 1 - Prepare a multistep Income statement for Moon Corporation for 2020 using the below data.

Advertising expense 250 Wages expense 3,300

Utilities expense 820 Land 81,000

Cost of goods sold 29,600 Sales revenue 71,400

Income tax expense 480 Interest expense 340

Accounts payable 5,400 Rent expense 5,700

Question 2 - Record the required adjusting journal entries on December 31, 2020 for the below transactions of Moon Corporation.

a. On Oct 1, 2020, $5,840 was collected as advance from a customer for services to be provided over the next 12 months.

b. Salaries are paid each Friday, $175 per day for the five-day week. This Year, Dec 31, has fallen on a Tuesday.

c. On Jan 1, 2020, purchased machinery for $126,000. The machinery will have a useful life of 6 years.

Question 3 - Prepare the bank reconciliation for Moon Corporation for March 31, 2021 using the following information:

The balance on the Mar 31, 2021 bank statement is $34,215.

The balance on the cash account in the book on Mar 31, 2021 is $34,531

The accountant mistakenly recorded a $765 cash receipt as $657.

The bank statement indicated bank service charges of $45 for Mar 31, 2021.

Outstanding cheques as of Mar 31, 2021, amount to $1,135.

Deposits in transit as of Mar 31 2021, amount to $1,412.

Bank charged $102 for an NSF cheque.